National rating service ends review of R.I. debt

Moody's Investors Service has ended its scrutiny of Rhode Island's debt following the General Assembly's vote to make a payment relating to the failed investment in 38 Studios.

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Posted Jul. 2, 2013 @ 6:35 am

Moody's Investors Service has ended its scrutiny of Rhode Island's debt following the General Assembly's vote to make a payment relating to the failed investment in 38 Studios.

The national rating service said it ended its review of $2.1 billion in state debt prompted by uncertainty over whether the state would make the payment.

Gov. Chafee said the decision by lawmakers to set aside $2.5 million in the state budget for a debt payment next year sends a signal to the investment community that Rhode Island honors its obligations.

Some lawmakers had called to default on the state's debt for a $75 million loan guarantee given to the now-bankrupt video game company started by the former Red Sox pitcher Curt Schilling. But those attempts failed during budget votes last week. (Associated Press)